Transparency Market Research has
published a new report titled “Dimethyl
Ether Market by Raw Material Types (Fossil Fuel Based and Bio Based) for LPG
Blending, Aerosol Propellants, Transportation Fuel, Industrial Applications and
Other Applications - Global & China Industry Analysis, Size, Share, Growth,
Trends and Forecast, 2014 – 2020.” According to the report, the DME market
in China and across the globe was valued at US$ 4.46 Bn in 2013 and is likely
to reach US$ 8.37 Bn in 2020, expanding at a CAGR of 9.4% between 2014 and 2020.

Dimethyl
ether (DME) is a downstream derivative of methanol and is used in a number of
applications such as LPG blending, aerosol propellants, transportation fuel,
industrial, and others. LPG blending is the largest application of DME on the global
scale. However, the DME market is highly region-oriented, with China alone
accounting for over 80% of the global market. Domination of China in terms of
production and demand is ascribed to the high demand for LPG –DME blended
domestic cooking fuel in the country. China has the largest coal reserves in
the world. The country also accounts for the highest coal output every year. Furthermore,
China has high coal-based methanol manufacturing capacity in the country.
Manufacture of DME from its existing methanol capacity results in lower LPG
import burden on China. However, the recent government regulations have banned
blending of DME and LPG for domestic use. The country had rapidly expanded DME
manufacturing capacities in anticipation of high growth from the LPG blending
application. Strict government regulations adversely affected the DME market in
China, thereby hampering market growth. Illicit blending of DME in LPG exists
in the country. The DME market is experiencing a slowdown of late. It is
anticipated to pick up pace after the announcement of clear government
directives pertaining to DME-LPG blends.

Fossil fuel
based DME is the largest segment in terms of raw materials in the world. Its
dominance can be ascribed to China’s dominance in the market. Demand for bio
based DME is higher in developed regions such as North America, Europe, Japan
and South Korea due to its lower carbon footprint. Aerosol propellants is the
major application segment in North America and Europe. Akin to global trends, transportation
fuel is the fastest growing application in these regions.

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